Puerto Rico's Principal Financial Funding Sources

As in America the Small Business Administration helps entrepreneurs to startup their business, in Puerto Rico there are two mayor government agencies aimed to the same objective. These are the Government Development Bank and Puerto Rican Economic Development Bank. These institutions were created to help Puerto Rican start and develop their small business by providing financial aid.

The Government Development Bank (GDB) offers the economic sector economic stability functioning as a financial advisor of the Commonwealth of Puerto Rico. The agency offers to Puerto Rican business people several financial alternatives like: deposit and checking accounts, deposit certificates, loans, deposit certificates and zero-balance accounts. The agency also offers financial services like: balance consulting, periodic financial reports delivery, transaction monitoring and stop payments services. All there offers are also available my electronic banking.

The applicant must complete a funding request -which is available online- and specify the application's purposes, reasons and the requested amount. Other information available in the GDB site are industry insights for investors, and a detailed list of other affiliated government agencies that also provide economic assistance to young entrepreneurs. These organizations are:

• Puerto Rico Public-Private Partnerships Authority
• Puerto Rico Municipal Finance Agency
• Puerto Rico Sales Tax Financing Corporation
• Puerto Rico Infrastructure Financing Authority
• Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority
• Children’s Trust Fund

A second government financial aid agency is the Economic Development Bank. It is aimed to develop and promote small and medium businesses providing various financing alternatives. The agency helps finance small and medium companies, new entrepreneurs, and businesswomen. It also also encourages the generation of self-employment.   

The agency also offers different types of loans, credit lines for contractors, business credits, and credit line for nonprofit organizations. Some requirements for these services are to fill a funding request, applicable federal or state warranties, 10% to 20% minimum contribution, and loan year limit stipulations. 

It is important to acknowledge that even though these financial alternatives help building up and develop potential business, are also future debts that will need to be paid. So, it is important for young entrepreneurs to be risponsible when financial decision-making is needed to benefit the business.

The Business Plan Importance

Business plan performance is the first recommendable step to establish a company. One of the things business expert Angelo Meneguzzi has emphasized is the importance of redacting an attractive business plan obtain to investors. With this fact in mind, it is my intention to create an effective business plan in order to ensure investors of a safe start to the company.

Understating the importance of an outstanding business plan and its parts has given me the need of writing each component the best way possible. This includes drafting error-free chapters as detailed as possible, calculating actual budgets, and setting realistic goals parallel to the investors’. The clue to business plan success is to always considerate what would the investor like to see in each component to make him or her interested in the business.

Studying business expert Andrea Cockerton has given me the charisma of not being afraid of asking for money when it comes the time of talking about investment amounts. Most businesses plan their budgets within months in advance to organize their economic cycles. This means that approaches to investors should be done in time so the plan can be actually considered. Another important thing in the business budget is using real numbers and real economic goals. If the business plan shows the right numbers –according to the Puerto Rican entertainment businesses and its regulations- the investor will automatically understand that the company is up to a great start and that its employees know how the industry is behaving.

One of the most important parts of GY.entertainment’s business plan to investors should be the target market. Investors should be interested in investing in businesses where both parties share the same target market. This joint message will ensure that both parties benefit equally.

A second part from the business plan important to investors should be the budgets and financials statuses. Money is basically one of the main –or the main- engines of any company. If GY.entertainment does not demonstrate –by numbers- that it will be a financially competitive business, investors will not see potential in investing. It is mandatory letting them know that it is not a waste of time to decide being part of the company. This is ensured by:

·      demonstrating the capabilities of the company to fulfill its goals;

·      hired professionals enjoying vast knowledge and experience;

·      the company’s positional statement and mission in the industry; and

·      and the company’s opportunities of success.